North Carolina Down Payment Support Programs

Online Merchant account - The North Carolina Housing Finance Agency got two excellent programs for first-time Home Buyers. These programs would be the deposit Assistance System as well as the Mortgage Credit Certificate.

Should you meet the requirements for one of those plans and you purchase a property between December 1, 2009 and January 1, 2009, you might also qualify for the $8,000 tax credit only enacted into law.

First, who is a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a house in the past three years. It is exactly the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with moderate and low incomes. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

If you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit in your federal income taxes. You can save around $2,000 on your taxes.

Should you qualify for the MCC you will find a way to unite this. This may reduce the tax liability of a buyer's .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your own income as well as the cost of the house you're purchasing. Household income is defined as the “gross income of the mortgagor and any other individual anticipated to live in the dwelling who's 18 years old or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Dwelling $210,000

The buyer just needs to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This plan has stricter income limits than the MCC program summarized above. Like the MCC application, it could be used in combination with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nevertheless, can't be applied in combination together with the MCC. That is an either or situation.

House price limits that apply in Durham Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing Residence $210,000